Oil Prices Plunge 7% as U.S. and Iran Signal Room for Diplomacy
Oil prices plunged nearly 7% on Monday after Washington and Tehran both signaled they would give diplomacy a chance, wiping out part of the war premium that lifted crude through October. Brent traded at $105.60 per barrel, down $7.85, and WTI fell $7.20 to $96.92. Iranian President Masoud Pezeshkian said on Monday that the Supreme Leader has granted the government “certain authorities” over peace…
Oil prices experienced a significant decline of nearly 7% on Monday, with Brent crude trading at $105.60 per barrel and WTI at $96.92, as U.S. and Iran signaled a willingness to engage in diplomacy. Iranian President Masoud Pezeshkian announced that the Supreme Leader had granted the government "certain authorities" to pursue peace talks, while Foreign Minister Abbas Araghchi stated that Tehran was working on a proposal to reopen the Strait of Hormuz within two days if the U.S. met certain conditions.
These conditions include the lifting of the naval blockade of Iranian ports, the removal of oil sanctions, and a halt to fighting in the region. Meanwhile, U.S. Secretary of State Marco Rubio emphasized that no decision on new strikes had been made, and President Trump preferred a diplomatic resolution. Israeli Prime Minister Benjamin Netanyahu urged Trump to resume strikes immediately following the midterm elections, but Trump indicated a willingness to give the talks more time.
The geopolitical risk premium, estimated at around $27 per barrel, accounted for much of the rally in oil prices, which had previously reached $118 per barrel in October.
Brief written by urgent.news from OilPrice's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
